As India navigates the post-pandemic challenges, the Union Budget 2024 provides a strategic roadmap for economic recovery and sustainable development. The increased standard deduction, revised income tax rates, and substantial investments in key sectors are expected to stimulate growth, create jobs, and promote social welfare, ensuring that the benefits of development reach all sections of society.
This budget is not just a financial document but a vision for a more prosperous and inclusive India. The measures outlined will play a crucial role in shaping the nation’s future, driving economic growth, and improving the lives of millions.
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Union Budget 2024: Major Tax Reforms Announced, Standard Deduction Hiked for Salaried Taxpayers
New Delhi, July 2024 – In her seventh consecutive Union Budget presentation, Finance Minister Nirmala Sitharaman unveiled significant tax reforms aimed at providing relief to the middle class and stimulating economic growth. With a focus on a ‘Viksit Bharat’ by 2047, the Union Budget 2024 features a notable increase in the standard deduction and a new set of income tax rates, benefiting millions of taxpayers across the nation.
Following the budget presentation, Sitharaman addressed a press conference accompanied by Minister of State for Finance Pankaj Chaudhary, Finance Secretary T.V. Somanathan, and Chief Economic Adviser V. Anantha Nageswaran, elaborating on the details and implications of the new financial policies.
Live Updates from Budget Day
| Time | Update |
|---|---|
| 9:30 am | Nirmala Sitharaman heads to Rashtrapati Bhavan with budget documents. |
| 10:30 am | Finance Minister reaches Parliament. |
| 11:00 am | Finance Minister tables the budget. |
| 11:15 am | Focus on employment, poor, women, youth, and farmers announced. |
| 11:20 am | Agriculture and allied sectors allocated Rs 1.52 lakh crore. |
| 11:30 am | Rs 1.48 lakh crore provided for education, employment, and skill development. |
| 11:35 am | New centrally-sponsored scheme to skill 20 lakh youth over 5 years. |
| 11:45 am | Government to set up working women hostels. |
| 12:00 pm | Budget provides Rs 2.66 lakh crore for rural development. |
| 12:30 pm | Standard deduction hiked. |
Key Announcements: Standard Deduction and Income Tax Rates
The Union Budget 2024 introduces a substantial increase in the standard deduction, aimed at easing the financial burden on salaried individuals and pensioners. The standard deduction, currently set at ₹50,000, will be increased to ₹75,000. This move is expected to offer significant relief to taxpayers, especially in light of rising inflation and the increasing cost of living.
Alongside the hike in the standard deduction, new income tax slabs have been proposed to create a more progressive tax regime. The revised tax structure is designed to provide relief to lower and middle-income groups, while ensuring that higher earners contribute a fair share.
New Income Tax Slabs
| Income Range | Tax Rate (%) |
|---|---|
| Up to ₹3 lakh | NIL |
| ₹3 lakh – ₹7 lakh | 5 |
| ₹7 lakh – ₹10 lakh | 10 |
| ₹10 lakh – ₹12 lakh | 15 |
| ₹12 lakh – ₹15 lakh | 20 |
| Above ₹15 lakh | 30 |
Economic Growth and Infrastructure Development
The budget allocates ₹10 lakh crore towards infrastructure development, encompassing road and highway construction, railway expansion, and smart city projects. This investment aims to generate employment, spur economic activity, and create a robust infrastructure framework essential for sustained growth.
Digital Infrastructure and Innovation
Significant investments have been made in the Digital India initiative, focusing on expanding internet connectivity in rural areas, promoting digital literacy, and supporting startups. The government aims to foster an innovative digital ecosystem that can drive future economic growth.
Social Welfare and Healthcare
Healthcare and social welfare are key priorities in the Union Budget 2024. The National Health Mission receives a substantial boost, aimed at improving healthcare services and infrastructure, particularly in underserved areas. New medical colleges and hospitals will be established, enhancing the availability of medical education and healthcare facilities.
The budget also emphasizes social security for vulnerable populations. The Pension Yojana for senior citizens has been expanded, and additional funds have been allocated for social welfare schemes targeting the needy.
Agriculture and Rural Development
To support the agricultural sector, the government has allocated ₹1.52 lakh crore, focusing on improving irrigation, promoting sustainable farming practices, and increasing agricultural productivity. The Pradhan Mantri Fasal Bima Yojana receives increased funding, providing better crop insurance and risk coverage for farmers.
Rural development initiatives include significant investments in infrastructure projects such as road construction, electrification, and clean drinking water provision, aimed at enhancing the quality of life in rural areas and creating economic opportunities.
Support for MSMEs and Industry
Recognizing the vital role of Micro, Small, and Medium Enterprises (MSMEs) in the economy, the Union Budget 2024 introduces a new credit guarantee scheme to facilitate easier access to financing. This initiative is expected to encourage investment and support the growth of new businesses.
Industries such as manufacturing, technology, and renewable energy receive tax breaks and subsidies to promote innovation, job creation, and sustainable development.
Fiscal Discipline and Environmental Sustainability
Despite increased spending, the budget emphasizes fiscal discipline, targeting a reduction in the fiscal deficit to 4.5% of GDP from 6.4% the previous year. Measures to improve tax compliance and broaden the tax base, including simplified tax filing processes and enhanced enforcement against tax evasion, are expected to support these efforts.
Environmental sustainability is a key focus, with increased funding for renewable energy projects and incentives for electric vehicle adoption. The development of green infrastructure, such as sustainable urban transportation systems and energy-efficient buildings, is aimed at reducing India’s carbon footprint.
Public Reactions and Expert Opinions
The budget announcements have received mixed reactions from various stakeholders. Industry leaders have welcomed the focus on infrastructure development and support for MSMEs, viewing these measures as essential for economic growth and job creation.
Economists have praised the government’s commitment to fiscal discipline while addressing diverse sectoral needs. However, some express concerns about the feasibility of achieving the fiscal deficit target amid ambitious spending plans.
Taxpayers, particularly in middle-income brackets, have positively responded to the increased standard deduction and revised income tax rates. These changes are expected to provide significant relief and increase disposable incomes, potentially boosting consumer spending.
Social activists and healthcare professionals have welcomed the increased funding for social welfare and healthcare, emphasizing the importance of these investments in improving the quality of life.
The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, is a comprehensive financial blueprint aimed at fostering inclusive growth and addressing the diverse needs of the Indian economy. With significant measures to support taxpayers, infrastructure development, social welfare, and environmental sustainability, the budget reflects the government’s commitment to driving long-term economic progress and improving the standard of living.
As India navigates the post-pandemic challenges, the Union Budget 2024 provides a strategic roadmap for economic recovery and sustainable development. The increased standard deduction, revised income tax rates, and substantial investments in key sectors are expected to stimulate growth, create jobs, and promote social welfare, ensuring that the benefits of development reach all sections of society.
This budget is not just a financial document but a vision for a more prosperous and inclusive India. The measures outlined will play a crucial role in shaping the nation’s future, driving economic growth, and improving the lives of millions.
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